Over the past few years the MSMEs have become the cradle of innovation for young entrepreneurs in India and in turn have helped boost the Indian economy,
MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities as well as 33.4% of India's manufacturing output. Research has shown that after the agriculture sector, the MSME sector has accelerated and improved the socio-economic status of the country even though the COVID-19 pandemic impacted a sizable percentage of MSMEs earnings. The unprecedented COVID-19 pandemic resulting in a country wide lockdown gravely impacted entrepreneurs, employees, stakeholders, employers and suppliers in the MSME space. This led to numerous problems in the production and supply processes. Ultimately, businesses faced challenges related to salary payments, loan repayments etc. Micro and small enterprises faced the most losses in the MSME space due to the lack of liquid funds. Although this time was rather bleak for MSMEs at large, some businesses diversified into essential commodities like sanitizers, toiletries, medical equipment, PPE kits and reusable masks to name a few. These businesses were able to adapt and show resilience in such a time.
Under the Chairmanship of Prime Minister Shri Narendra Modi, the Ministry of Micro, Small and Medium Enterprises which was set up in 2007, came up with various programmes and schemes under AtmaNirbhar Bharat’ i.e. Self-reliant India initiative so as to aid MSMEs across the country in this unprecedented time. Additionally, the government was very conscientious and made sure MSMEs received appropriate aid in a timely manner. Some of the most important schemes during this time are as follows:
There are plenty of benefits from the Government guidelines for MSMEs. Firstly, MSMEs can greatly benefit from being able to exclusively manufacture certain products thereby giving them a competitive advantage and helping them increase their man power, thus, generating employment and also growing financially. Secondly, they can operate hassle free due to the SEZs (special economic zones) thus safeguarding themselves from real estate fluctuations. Thirdly, under the MSME Act MSMEs can benefit from loans, technology upgrades, cluster development, skill development, tool rooms. They can also gain manufacturing competitiveness. Lastly, the Indian Government provides MSMEs with help acquiring financial assistance and certain companies within the Rs 25 crore face value bracket are potentially exempted..
Anyone who is acquainted with the MSME space, will know that these enterprises face a myriad of challenges while procuring raw materials and finances - access to capital, credit, inflexible loan repayment etc.. EFL Connections, an online platform that connects buyers to sellers. The platform allows companies and enterprises across a wide geographical area to come together for the ease of doing business.
MSMEs can gain significant benefits from using the platform to post listings for a variety of new and used machinery and gain the best value for it as the case might be. MSMEs can also avail cost effective yet superior quality raw materials and services like business financial advisory from EFL Connections
The Indian MSME sector is a gold mine for the Indian economy, especially since recent government policies have been refurbished to help MSMEs become more resilient in the face of unprecedented economic disasters like we have seen in 2019. Furthermore, with online marketplaces like EFL Connections making the business environment more conducive to financial support, MSMEs can finally hold a solid footing in the business world. This sector if fuelled can propel greater socio-economic development in the years to come.